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Ninety One

PRI reporting framework 2020

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Engagement

LEA 02. Reasoning for interaction on ESG issues

Indicate the method of engagement, giving reasons for the interaction.

Type of engagement

Reason for interaction

Individual / Internal staff engagements
Collaborative engagements
Service provider engagements

02.4. Additional information. [Optional]

We engage to improve transparency of information, accountability of boards and to preserve and encourage the creation of sustainable value. Our engagements are categorised into four sections: strategic, collaborative, theme-based or proxy voting.

1.         Strategic engagement

Ninety One will make a conscious decision about whether a strategic engagement is appropriate for an investment strategy.

Where engaging is appropriate, Ninety One will make an assessment of the issues to ensure that they are relevant, value accretive and that there are concrete and measurable actions that can be taken.

Specific engagement will then take place between the analyst, portfolio manager or engagement team and the chairman, directors or other officers of the company.

2.         Collaborative engagement

Ninety One may work with other shareholders from time to time to promote good governance and to prevent any destruction in value. Discussions that take place will relate to specific voting actions, and will at no stage seek managerial control or control over the assets of the company. Rather, Ninety One will collaborate on a range of different issues such as the introduction of new skills or diversity to a board of directors, the amendment of a governance deficiency and the prevention of value destruction.

3.         Theme-based engagement

Subject to the interests of our clients, Ninety One may seek to become involved in professional, national and international initiatives that seek to enhance governance, corporate citizenship and disclosure practices.

4.         Proxy voting engagement

Ninety One regards the shareholder vote as a fundamental part of preserving and growing the real purchasing power of our clients’ assets. The manner in which we vote is integral to our stewardship policy. Engagement to reinforce our voting usually takes place with the company secretary. The second quarter of the year is allocated predominantly to proxy voting engagements, while other engagements take place throughout the year, led by the ESG team and members of the investment team as required. All engagements are supported by appropriate analysts, portfolio managers and the ESG team


LEA 03. Process for identifying and prioritising engagement activities

New selection options have been added to this indicator. Please review your prefilled responses carefully.

03.1. Indicate whether your organisation has a formal process for identifying and prioritising engagements.

Indicate the criteria used to identify and prioritise engagements for each type of engagement.
Type of engagement
Criteria used to identify/prioritise engagements
Individual / Internal staff engagements

Individual / Internal staff engagements

Collaborative engagements

Collaborative engagements

03.3. Additional information. [Optional]

Engagements take place as an integral part of our investment process – each of the different investment teams initiate engagement based on their investment process and team priorities. It is important that we understand the materiality of the engagement and whether there could be sustainable value creation, and prioritise accordingly. In general, for our strategic engagements (which are generally more longer term and time consuming), it is also important to consider the likelihood of a successful outcome. Those where there is an increased likelihood are often prioritised.


LEA 04. Objectives for engagement activities

New selection options have been added to this indicator. Please review your prefilled responses carefully.
Indicate whether you define specific objectives for your organisation’s engagement activities.
Individual / Internal staff engagements
Collaborative engagements

04.2. Additional information. [Optional]


LEA 05. Process for identifying and prioritising collaborative engagement

Indicate whether you monitor and/or review engagement outcomes.
Individual / Internal staff engagements
Collaborative engagements
Indicate whether you do any of the following to monitor and/or review the progress of engagement activities.
Individual / Internal staff engagements
Collaborative engagements

05.3. Additional information. [Optional]

We measure engagement progress. As we measure the engagement journey, we also document all dialogue and outcomes, against our initial engagement objectives in our research management system, Tamale. These notes can then be accessed by all investment specialists.

We report our progress to the Investment Governance Committee on a quarterly basis.  


LEA 06. Role in engagement process

06.1. Indicate whether your organisation has an escalation strategy when engagements are unsuccessful.

06.2. Indicate the escalation strategies used at your organisation following unsuccessful engagements.

06.3. Additional information. [Optional]

Whether engaging with the board in its own capacity, or in collaboration with other shareholders, Ninety One will seek to resolve an issue rather than escalating it to a level which may be damaging to the company and thus its own holding.


LEA 07. Share insights from engagements with internal/external managers

07.1. Indicate whether insights gained from your organisation`s engagements are shared with investment decision-makers.

Type of engagement

Insights shared

Individual / Internal staff engagements

Collaborative engagements

07.2. Indicate the practices used to ensure that information and insights gained through engagements are shared with investment decision-makers.

07.3. Indicate whether insights gained from your organisation’s engagements are shared with your clients/beneficiaries.

Type of engagement

Insights shared

Individual/Internal staff engagements

Collaborative engagements

07.4. Additional information. [Optional]

Throughout the engagement journey the ESG team and investment teams work very closely together. All engagements are logged via our research management system, Tamale. Information stored here can be accessed by any investment specialist. 


LEA 08. Tracking number of engagements

08.1. Indicate whether you track the number of your engagement activities.

Type of engagement
Tracking engagements
Individual/Internal staff engagements​

Collaborative engagements

08.2. Additional information. [Optional]

We track and record engagements involving the ESG team in full. In addition, all engagements undertaken by the ESG team are reported to and discussed at the quarterly Investment Governance Committee meetings. While we track collaborative engagements in full, there are certain collaborative efforts, where we offer or show our support, but do not monitor as closely.


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